This worked in 0.38-11; it broke when we went to the 1.0.x series.
I have, in my default panel config, the following:
[Applet_19]
id=Swallow
parameters=Dali Clock
execpath=xdaliclock -fn 10x20 -geometry 120x24 -cycle
width=120
height=24
position=851
panel=0
unique_panel_id=1856552961
right_stick=true
With sawfish-1.0.1-3, the applet itself is blank, and the clock appears in the
middle of the screen. Something about the window properties confuses sawfish;
if I maximize a window while the clock is running, it only fills the screen to
the top of the clock.

This is caused by:
2001-08-24 John Harper <jsh@pixelslut.com>
* events.c (unmap_notify): call remove_window () on unmapped
(withdrawn) windows. This fixes some standards-compliance bugs
due to us handling windows differently the second time they're
mapped than the first